When you own a business and hire employees to help you get work done, you are often required by law to carry at least some sort of insurance to protect your business and/or employees.
Worker’s Comp Insurance
The most common insurance that is required by law to carry is Worker’s Compensation Coverage. This type of insurance covers the employees from injury on the job. If an employee slips and falls while working due to a wet or slippery floor, or they strain their muscles as a result of lifting something too heavy for them, or even experience a health condition as a result of stressful working situations, they may file an insurance claim to cover doctor visits and time lost while trying to recover. It is important to try to keep your employees as safe as possible in the workplace so that you don’t have to face these claims.
General Liability Insurance
General Liability Insurance is another form of protection a business can purchase. This insurance covers customers against anything an employee does that inflicts harm against the customer. This can include incidents that lead to bodily injury, property damage, or advertising injury claims. This type of insurance only covers the business against customer claims, not employee claims.
Professional Liability Insurance
Another type of insurance similar to General Liability is Professional Liability Insurance (PLI) or Errors & Omissions Insurance. This type of insurance protects companies who provide advice or skill-based services (such as a doctor, contractor, consultant, etc.). PLI also extends coverage to include actions or inactions of employees. In the event that the advice or skill causes harm or some type of damage to a client. For example, a misdiagnosis of a doctor, poor workmanship of a general contractor, or bad financial advice are all possible scenarios that could have harmed a client in some way that can be covered under Professional Liability Insurance
Employment Practices Liability Insurance
An employer may also want to look into purchasing Employment Practices Liability Insurance to protect themselves and their business against claims made by an employee who accuse the business or employer of discrimination, harassment, wrongful termination, or deprivation of career opportunities. To avoid such claims, employers should practice equal opportunity employment and thus give each employee equal benefits, opportunities, treatment, and respect.
If any employee feels for any reason they have not been treated with such, they may decide to file a lawsuit against the business. Besides having this insurance in place, the business should be a safe place for the employees to go to work and not have to worry about being treated unfairly. All employees should be aware of this practice and it should be taken seriously to avoid any potential loss for the business.
All of the mentioned business insurances can be purchased for the sake of peace of mind but can be extremely handy if a lawsuit ever arises. Insurance protects businesses from losing its assets or having to close their doors permanently. These are only a few, but quite important insurances when thinking of the longevity of your entity.